The All Pakistan Textile Mills Association (APTMA) says the textile industry in Pakistan is facing a crisis-like situation because of the high cost of doing business and liquidity constraints. APTMA, therefore, has demanded a further reduction of long term financing facility by at least one per cent i.e. from five per cent to four per cent, reduction in export refinance facility by another 0.5 per cent, i.e. 3.5 per cent to three per cent, and the provision of this facility to the complete textile chain i.e. from spinning to garmenting.

It also wants zero rating of all taxes on exports and providing a five per cent rebate against the export of yarns, fabrics, made-ups and garments. Also the duty on imports of manmade fibers like polyester, viscose, acrylic, and nylon should be done away with so that Pakistan’s yarn producers can compete with Indonesian or Chinese producers who have their own manufacturing capacities to produce these raw materials and their variants.

Pakistan’s textile industry exports registered a decline of over 10 per cent in January 2016, on a month on month basis. The industry has been functioning at 70 per cent capacity because of the liquidity crunch and energy constraints. APTMA wants investments to be encouraged in the sector so that the idle capacity of the textile industry can be energised.